08 types of contract used in contractor selection from 01/01/2024 in Vietnam
From 01/01/2024, what are types of contract used in contractor selection in Vietnam? - Mr. Khanh (Quang Nam).
08 types of contract used in contractor selection from 01/01/2024 in Vietnam
The National Assembly has just promulgated the Law on Bidding in 2023.
Compared with the provisions of Article 62 of the Law on Bidding in 2013, four new types of contracts have been added in Article 64 of the Law on Bidding in 2023, which are:
- Cost plus fee contract
- Performance-based contract
- Percentage-based contract
- Mixed contract
Therefore, there are 08 types of contract used in contractor selection from 01/01/2024 in Vietnam:
- Lump sum contract
- Fixed unit price contract
- Adjustable unit price contract
- Time-based contract
- Cost plus fee contract
- Performance-based contract
- Percentage-based contract
- Mixed contract
What are conditions for signing of contract from 01/01/2024 in Vietnam?
Pursuant to Article 66 of the Law on Price in 2023 stipulating conditions for signing of contract from 01/01/2024 in Vietnam as follows
- The bid or proposal of the successful bidder must still remain valid at the time of signing the contract. In case of centralized procurement with use of the framework agreement, the framework agreement must still remain valid at the time of signing the contract.
- At the time of signing the contract, the successful bidder must meet all technical and financial requirements for executing the package in accordance with the requirements laid down in the bidding documents or RFP.
- The employer is requested to provide funding for making advances and payments, premises and other conditions necessary for ensuring the package execution schedule.
What are included in the contract documents signed with a contractor in Vietnam?
Pursuant to Article 65 of the Law on Price in 2023 stipulating contract documents signed with contractor in Vietnam as follows
Contract documents signed with contractor
1. The contract documents signed with a contractor shall include:
a) Contract agreement;
b) Contract appendices, including the activity schedule, price schedules, and execution schedule (if any);
c) Decision on approval of contractor selection result.
2. Depending on the scale and nature of each package, the contract documents may, in addition to the documents specified in Clause 1 of this Article, include one or some of the following documents:
a) Contract completion record;
b) Contract negotiation record (if any);
c) Written agreement made by the parties on conditions of the contract, including general conditions of contract and special conditions of contract;
d) Bid or proposal of the successful bidder and clarifications thereof;
dd) Bidding documents or RFP and addenda thereto;
e) Other relevant documents.
As regulations above, the contract documents signed with a contractor in Vietnam include:
- Contract agreement;
- Contract appendices, including the activity schedule, price schedules, and execution schedule (if any);
- Decision on approval of contractor selection result.
Note: Depending on the scale and nature of each package, the contract documents may also include:
- Contract completion record;
- Contract negotiation record (if any);
- Written agreement made by the parties on conditions of the contract, including general conditions of contract and special conditions of contract;
- Bid or proposal of the successful bidder and clarifications thereof;
- Bidding documents or RFP and addenda thereto;
- Other relevant documents.
Note: The Law on Bidding 2023 takes effect from July 1, 2024.
Best regards!
